Amend CSHB 2686 by inserting a new, appropriately numbered
SECTION to read as follows:
      SECTION __. Section 171.721, Tax Code, is amended to read as
follows:
      Sec. 171.721. DEFINITIONS. In this subchapter:
            (1) "Base amount," "basic research payment," and
"qualified research expense" have the meanings assigned those terms
by Section 41, Internal Revenue Code, except that all such payments
and expenses must be for research conducted within this state.
            (2) "Strategic investment area" means an area that is
determined by the comptroller under Section 171.726 that is:
                  (A) a county within this state with above state
average unemployment and below state average per capita income;
<or>
                  (B) an area within this state that is a federally
designated urban enterprise community or an urban enhanced
enterprise community; or
                  (C) a county within this state that has a
spaceport, as defined by Section 4D, Development Corporation Act of
1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by
Chapter 1537, Acts of the 76th Legislature, Regular Session, 1999,
within its boundaries.